Non-Linear Relationship between Capital Structure and Firm Value Nexus: An Empirical Study in Egyptian Capital Market
| المصدر: | المجلة العلمية للدراسات التجارية والبيئية |
|---|---|
| الناشر: | جامعة قناة السويس - كلية التجارة بالاسماعيلية |
| المؤلف الرئيسي: | Awad, Ebtehal Orabi (Author) |
| مؤلفين آخرين: | Ali, Sharihan Mohamed (Co-Author) |
| المجلد/العدد: | مج13, ع2 |
| محكمة: | نعم |
| الدولة: |
مصر |
| التاريخ الميلادي: |
2022
|
| الشهر: | أبريل |
| الصفحات: | 148 - 179 |
| DOI: |
10.21608/jces.2022.248641 |
| ISSN: |
2090-3782 |
| رقم MD: | 1295901 |
| نوع المحتوى: | بحوث ومقالات |
| اللغة: | الإنجليزية |
| قواعد المعلومات: | EcoLink |
| مواضيع: | |
| كلمات المؤلف المفتاحية: |
Leverage | Firm Performance | System GMM | Egyptian Context | Quadratic Regression
|
| رابط المحتوى: |
عدد مرات التحميل
3
| المستخلص: |
This paper sheds light to the non-linear relationship between leverage and firm performance in the Egyptian capital market. To do this, Egyptian listed firms observed over the period 2010-2019 are exploited, totaling 780 observations. Using a system GMM estimator and quadratic regression, a U-shaped relationship between leverage and the performance of Egyptian firms was found. This result is described by the fact that there is an optimal threshold of leverage on firm performance, below which the performance of Egyptian firms increases. However, the performance of these firms is reduced as a result of the rise in financing costs and information asymmetry, once the exposure of debt ranges to a certain threshold. Therefore, the predictions of the Trade-off theory are admitted. In addition, lagged values and control variables are robust determinants of present values of firm performance. Though, the outcomes of the previous published papers in the developed countries favored trade off theory as it possibly provides a better account for capital structure choices, conversely, pecking order theory is slightly preferred for developing countries. This study provides a much more challenging confirmation that the trade-off theory is more preferred for MENA countries taking the Egyptian context as an example for the MENA region. |
|---|---|
| ISSN: |
2090-3782 |
عناصر مشابهة
-
The Relationship between Capital Structure and Economic Value Added: Empirical Study of Jordanian Industrial Firms
بواسطة: ساق الله، هبه صالح ياسين منشور: (2016) -
The Relationship between Intellectual Capital Efficiency and Corporate Market to Book Value of Non-Financial Firms Listed in Amman Stock Exchange
بواسطة: تيم، أريج تيسير منشور: (2019) -
The Relationship between Egyptian Economic Reform, Corporate Governance, Firm Ownership and Firm's Value: An Empirical Study
بواسطة: Bolos, Nargis Kaisar منشور: (2018) -
The Effect of Ownership Structure on Firm’s Financial Performance: An Empirical Study on companies listed on the Egyptian Stock Exchange
بواسطة: El-Moslemany, Racha منشور: (2018) -
The Impact of Real Earning Management on the Relationship between Social Capital and Future Firm Value: An Empirical Study
بواسطة: Mohamed, Dalia Ezzat Amin منشور: (2023)
